Institute for Supply Management’s report revealed on Monday that
business activity in Chicago shrank
again in March, albeit at a softer pace than
in February.
The Chicago Business Barometer, also known as the Chicago purchasing
manager's index (PMI) came in at 47.6 in March, up from an unrevised 45.5 in the previous month. That represented the
highest reading since November 2023 (55.6), which, however, signalled a continued
contraction in activity in the Chicago Fed region for the 16th straight month (a reading above 50 indicates an expansion of activity, while a reading
below this level points to a contraction).
Economists had expected the indicator to slip to 45.2 in March.